Imported Canadian Newsprint Tariffs Are Reduced, But Not Eliminated, by Department of Commerce

The U.S. Department of Commerce's final determination slightly lowered the maximum tariffs that can be imposed on imported uncoated groundwood paper. | Credit: iStock

The U.S. Department of Commerce made a final determination yesterday to proceed with the anti-dumping and countervailing newsprint tariffs it had initially imposed on uncoated groundwood papers imported from Canada, despite strong opposition from Congressional members on both sides of the aisles, various newspaper printing and publishing advocacy groups, industry associations, printing companies and even several U.S.-based newsprint manufacturers. The ruling was a partial victory for newspaper, book, catalog and insert publishers and printers, however, in that the border taxes - which ranged from 4.4% to 32% - were decreased slightly to a maximum 20.26% duty deposits that can be collected at the U.S. border.

Specifically, the Department of Commerce calculated a dumping rate of 16.88% for Catalyst, and 0% dumping rates for Resolute Forest Products and White Birch Paper. Based on the rates calculated for Resolute and White Birch Paper, it then determined a 0% dumping rate for all other Canadian producers and exporters of uncoated groundwood paper.

The agency also calculated countervailing (due to Canadian government subsidies) levies of 3.38% for Catalyst, 9.53% for Kruger, 9.81% for Resolute, 0.82% for White Birch Paper and subsidy rates of 8.54%, on average, for all other Canadian newsprint producers and exporters.

Highest Duties: Canadian Newsprint Paper Manufacturer Catalyst

The most impacted manufacturer - Richmond, British Columbia-based Catalyst Paper - as might be expected, was disappointed with the Commerce Department's dumping investigation of its export practices and subsequent ruling that results in 20.26% duties being imposed on Catalyst's newsprint exports to the United States.

"While not surprised, we’re disappointed with the U.S. Department of Commerce’s decision to keep these unwarranted duties in place, albeit at a lower rate,” said Ned Dwyer, president and CEO. “These duties are punitive and without merit. The allegation that we are subsidized and engage in dumping activities is wrong and does not adhere to the facts.